Restrictions on Retained Earnings

12 Months Ended

Dec. 31, 2012

Restrictions On Retained Earnings

Restrictions on Retained Earnings

NOTE 22 Restrictions on Retained Earnings

The Bank is restricted by banking regulations from making dividend distributions above prescribed amounts and is limited in making loans and advances to PSB. At December 31, 2012, management believes that maintaining the regulatory framework of the Bank at the well-capitalized level will effectively restrict potential dividends from the Bank to an amount less than $21,567. Furthermore, any Bank dividend distributions to PSB above customary levels are subject to approval by the FDIC, the Bank’s primary federal regulator, and the Wisconsin Department of Financial Institutions, the Bank’s primary state regulator. Because 2012 Bank dividends paid to PSB exceeded 2012 Bank net income, the Bank may not pay dividends to PSB in excess of net income during 2013 or 2014 without prior approval.